New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Exam One Study Guide

by: Nicholas D'Ambrosio

Exam One Study Guide ACG2021

Marketplace > University of Florida > Finance > ACG2021 > Exam One Study Guide
Nicholas D'Ambrosio

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Study Guide for Exam One.
Introduction to Financial Accounting
Jill Kristen Goslinga
Study Guide
finance, business, Accounting, financial accounting
50 ?




Popular in Introduction to Financial Accounting

Popular in Finance

This 3 page Study Guide was uploaded by Nicholas D'Ambrosio on Saturday September 17, 2016. The Study Guide belongs to ACG2021 at University of Florida taught by Jill Kristen Goslinga in Fall 2016. Since its upload, it has received 144 views. For similar materials see Introduction to Financial Accounting in Finance at University of Florida.


Reviews for Exam One Study Guide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/17/16
Exam One Study Guide Chapter One: The core of financial accounting revolves around these 4 basic financial statements: - Income Statement (statement of operations) - Statement of Retained Earnings - Balance Sheet - Statement of Cash Flows A business generally takes one of the following 4 forms: proprietorship, partnership, LLC, or Corporation Continuity Assumption, Historical Cost Principle, Stable monetary unit assumption. Assets = Liabilities + Owner’s Equity Owner’s Equity = Assets - Liabilities Know the 4 financial statements and how to construct them accurately. Chapter Two Know each type of account: Asset, Liability, Stockholder’s Equity. Know how to record each transaction in a T table. - Recognize which account the transaction pertains to. - Determine whether to debit or credit. - Record the transaction. The left side of the T account is called the debit side, the right side is called the credit side. Assets = Liabilities + Stockholder’s Equity Assets Liabilities Common Stock Retained Earnings Debit Credit Debit Credit Debit Credit Debit Credit + - - + - + - + Dividends Revenues Debit Credit Debit Credit + - - + Expenses Debit Credit + - Chapter Three Deferred expense: Entry in Past Adjustment Prepaid Expense xx Expense xx Cash xx Prepaid Expense xx Deferred Revenue: Entry in Past Adjustment Cash xx Unearned Revenue xx Unearned Revenue xx Revenue xx Depreciation: Depreciation Adjustment Equipment xx Depreciation Exp. xx Cash xx Accumulated Depreciation xx Accrued Expense: Adjustment Cash Entry Expense xx Accounts Payable xx Accounts Payable xx Cash xx Accrued Revenue: Adjustment Cash Entry Accounts Receivable xx Cash xx Revenue xx Accounts Receivable xx Because revenues, expenses, and dividends relate to a limited period, they are called temporary accounts. The closing process applies only to temporary accounts. Here are the steps to close the books of a company: - Debit each revenue account for the amount of its credit balance. Credit retained earnings for the sum of the revenues. This process transfers the sum of all revenues into Retained Earnings, therefore increasing retained earnings. - Credit each expense account for the amount of its debit balance. Debit retained earnings for the sum of the expenses. This process transfers the sum of the expenses into retained earnings, therefore decreasing retained earnings. - Credit the dividends account for the amount of its debit balance. Debit retained earnings. This entry places the dividends amount in the debit side of retained earnings. Remember that dividends are not expenses, but represent a permanent reduction of retained earnings. Net Working Capital = Total Current Assets – Total Current Liabilities Total Current Assets Current Ratio = Total Current Liabilities Total Liabilities Debt Ratio = Total Assets The norm for debt ratios for most big companies ranges from 60% - 70%. To keep debt ratios within normal limits, companies use these strategies: - Increase revenue and decrease costs, thus increasing current assets, net income, and retained earnings without increasing liabilities. - Sell stock, thus increasing cash and stockholder’s equity. - Choose to borrow less money.


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.